Updates Apple profits: price impact, supply chains, iPhone production

Federal judge Yvonne Gonzalez Rogers said that Apple was in “voluntary violation” of a decision in 2021 that she had rendered and that she returned the company for a possible criminal prosecution.

It is quite worthy of interest. But what about the rest of Rogers’ decision?

Well, it could also be quite worthy of interest.

It is possible That it could finally be the thing that fundamentally changes how Apple uses its App Store – an increasingly key source of the company’s income.

Or, it may not be.

Let’s review.

– Peter Kafka

According to Anurag Rana, senior analyst in the Chinese industry industry, the imminent tariff risks will probably have questions about its massive exposure to the Chinese manufacturing industry.

“Apple’s supply strategy will probably remain the most discussed subject on its profits call 2q given the company’s high dependence on China for assembly and components,” Rana said in a note last week.

Rana said that even if Apple products have been exempt from the list of Trump prices, there is always a risk that these supplements will come back.

Bank of America reiterated its “buy” note on Apple, citing the resilient benefits of the company, stable cash flows and the potential benefit of IA integration into its devices.

However, estimates of the company’s profits for the current quarter could take “more serious” success due to prices, especially if tensions between the United States and China intensified, Bofa analysts wrote.

“However, we note that Apple has many options to mitigate the risk of decrease for estimates. These include: supply in addition to Iphones from India, applying higher prices in products / services, putting pressure on its supply chain for better economy, by introducing new products at higher prices and modifying the rate of product versions”, added the bank.

Analysts issued a price target of $ 250 for the action, which implies an increase of 17% compared to current levels.

As the largest Apple income driver, iPhone sales have always taken the scene during Apple’s income, and the flagship product will be even more to the point.

Investors will seek indices on the success of the cheapest iPhone 16th 16th handset in February. They will also seek indications of society on the role of its AI -oriented services, have collapsed as an Apple Intelligence, in interest in new devices.

Apple also had more difficulty putting new iphones in the pockets in its most important international market, China, because national players like Huawei have tried to attract consumers with advanced phones competing with the iPhone with an aggressive pricing strategy.

The price of the iPhone is a key goal at a time when prices in China have raised concerns among analysts that higher costs could be passed on to consumers.

– Hasan Chowdhury

Angelo Zino, senior action analyst at CFRA Research, said that before consumer demand, due to buying buyers’ advance, prices should help Apple beat Wall Street income growth expectations of 4% during its results.

“We are looking for the growth of income for exceeding the 4%mar-ketch expectations, partially reflecting demand for demand in the United States given political uncertainty, in particular for high prices products where pricing risk is higher,” said Zino in a note last week.

Cfra Apple Tariffs to “buy” with a price target of $ 235.

One day before the gains, Apple lost a key legal battle on its rules of the App Store. A federal judge judged that Apple had violated an order of the court in 2021 by making it too difficult for the developers of applications to underline users to alternative payment options – and by giving 27% costs on external purchases.

The judge even referred Apple and one of his leaders to the federal prosecutors for potential criminal outrage, saying that they may have induced the trusted court.

It is a blow for the Apple high margin service activity, which includes the App Store, and was a major growth source. Expect that analysts wonder how it could have an impact on income and if Apple will be forced to loosen its grip on developers.

– Pranav dixit

JPMorgan said that Apple’s second trimester results should remind investors how resilient the manufacturer is in the middle of increasing macroeconomic uncertainties.

The bank has increased its estimates of quarterly income for the company by more than $ 2 billion, to $ 95.8 billion, against $ 93.5 billion, partly due to the probable increase in the company before the potential prices.

Analysts also said that the decrease in Apple’s equity prices restored it to a certain extent, with its now more attractive price for investors. Apple action is down 15% for the start of the year.

The bank has issued a “overlapping” note on action with a price target of $ 245, which implies an increase of 14% compared to its current level.

Apple’s revenues are involved in an increase in American-Chinese tensions, triggered by President Donald Trump’s rates of up to 145% on imports from the country. The trade war presents risks for Apple, which is about 90% of its products in China.

To mitigate these risks, Apple will accelerate its passage to India, aimed at considerably increasing iPhone production by 2026. But analysts warn that manufacturing in India costs Apple 5% to 8% more than in China, potentially tightening margins and adding logistical obstacles.

Expect that investors support Apple’s leaders on the speed and efficiency they can evolve from operations outside of China.

– Pranav dixit

Goldman Sachs analysts said investors will seek to hear about six key questions:

1. How do the prices have an impact on margins and demand?
2. How was the iPhone 16th recently launched?
3. What are the new Apple product versions for the rest of 2025?
4. How did Apple competition in China evolve?
5. What is the next step for Apple Intelligence?
6. How could Google’s antitrust trial have an impact on Apple’s income?

Regarding real results, Goldman analysts expect Apple expectations per $ 1.61 and revenue expectations of $ 94.0 billion in the quarter.

Second trimester

Third trimester

• Capital expenditure estimate: $ 2.55 billion

Full year 2025

• Capital expenditure estimate: $ 10.77 billion

Source: Bloomberg